Is a Company Able to Increase Brand Equity for a Product That Is in the Maturity Phase of the Plc?
A company is able to increase brand equity for a product that is in the maturity phase of the PLC. The maturity phase is characterized by increase competition, established brand recognition and slowing sales growth. In this phase product differentiation and market dominance become more critical (Anderson & Zeithaml, 1984). Brand equity is a set of brand assets and liabilities linked to a brand, its name, and symbol that add or subtract from the value provided by a product (Cravens, 1997). When a product reaches its maturity phase, a company is still able to increase brand equity by improving brand image, expanding brand awareness and entering new markets.
Improving brand image is an important way of increasing brand equity as it can help improving the strength, favorability, and uniqueness of the specific brand. It can be divided into two segments, repositioning the brand and changing brand elements. These segments enable some products that are in the maturity phase to be reintroduced again at an earlier stage of PLC when they have been modified (Donaldson, 1985) by sorting out the positive and negative associations. Repositioning enables companies to seek a change in customer’s perceptions of them in relation to compete other brands or changing customer expectations (Pride et al, 2007) that it requires establishing more compelling points of difference. It is important to reposition the brand on some key image dimensions and is needed to be more contemporary by creating relevant usage situations, a more contemporary user profile, or a more modern brand personality. This is because existing brands in the maturity phase of PLC may be seen as trustworthy to customers but also uninteresting and boring. Moreover, companies should secure a position which is unique and free from their close competitors. According to changes in customer tastes, repositioning the brand may include some combination of new products, new advertising, new promotions or new packaging.
Improving brand image is an important way of increasing brand equity as it can help improving the strength, favorability, and uniqueness of the specific brand. It can be divided into two segments, repositioning the brand and changing brand elements. These segments enable some products that are in the maturity phase to be reintroduced again at an earlier stage of PLC when they have been modified (Donaldson, 1985) by sorting out the positive and negative associations. Repositioning enables companies to seek a change in customer’s perceptions of them in relation to compete other brands or changing customer expectations (Pride et al, 2007) that it requires establishing more compelling points of difference. It is important to reposition the brand on some key image dimensions and is needed to be more contemporary by creating relevant usage situations, a more contemporary user profile, or a more modern brand personality. This is because existing brands in the maturity phase of PLC may be seen as trustworthy to customers but also uninteresting and boring. Moreover, companies should secure a position which is unique and free from their close competitors. According to changes in customer tastes, repositioning the brand may include some combination of new products, new advertising, new promotions or new packaging.